Economists call incentivized marketing "reverse bundling." It is the concept of using incentives and rewards to reach a desired result. An incentive has two meanings: an item of value received for doing or refusing to do something, and a punishment or reward received for having done or not having done something. Many companies and organizations have looked to incentives to encourage good behavior or reduce bad behavior in their own employees or in their customers.
Incentive marketing is also used in industries that sell goods or services. In this case, the goods or services are products. The company wants to convince its customers to do more business with them or become loyal to them. Advertising through the use of incentives gives an owner the ability to say to his customers: "if you continue to purchase from us, we will give you some incentive when you buy from us again." The company can also give a large reward if the customer purchases something they are not really interested in.
Incentive marketing can be a great way to get a new product on the market. The incentive does not have to be anything that would ordinarily be considered a reward. The same idea can be used in an enterprise where the services they provide are not up to their customers' standards.
Incentive marketing is not for everyone. People who are frustrated with their job and the environment in which they live may find this type of marketing unhealthy. Certain people may be offended by what they consider to be mere manipulation of the customer to make money for the company.
Many executives and managers dislike incentivized marketing. These executives and managers think that their managers should be leaders and not puppets of the marketing department. Some people believe that this is just a way for management to manipulate their employees. Others believe that incentive marketing is detrimental to the bottom line.
The problem is that motivates employees to do a better job and this makes the business better. People may not always like the sales pitch but when they see an incentive, they often get excited. People respond well to being rewarded for their hard work. When this type of marketing occurs, then the company can expect to see a better performance by its employees.
An employee in a company might use the incentives provided by management teams to motivate employees. This is especially true in offices that have been consistently understaffed. An incentive makes it possible for people to be motivated to do their best work.
When managers tell their employees that they need to do a certain amount of sales, they don't necessarily feel that the manager's job is being compromised. However, when someone tells a customer that they have to buy a particular product or service from the company, they feel that the manager's job is being threatened. An incentive makes it possible for a manager to say to a customer: "hey, you know, we really need your business. If you don't buy from us, we are going to give you some incentive when you buy from us again."
Incentive marketing is very effective because most people prefer a "nice" company to a "mean" one. When a company is nice, they win the loyalty of their customers. When a company is mean, they often lose the loyalty of their customers because the customers do not always feel the same level of warmth or loyalty that a company will sometimes show.
Customers often choose a company that is nice over a company that is mean. When a company does not have a strong sense of corporate goodwill, then customers do not feel comfortable expressing this to the company. When the customer does not feel as though the company treats them with kindness, then they tend to avoid purchasing from the company. The company that uses incentives is able to gain the loyalty of the customer.
When a company asks a customer to pay for something if they will purchase from the company again, then they are offering an incentive. An incentive marketing platform is designed to encourage or make someone want to buy from the company again. If a company gives a company a discount if the customer purchases a certain product or service, then they are providing an incentive. Incentive marketing is very effective when companies offer discounts or bonuses that are well-deserved.